New exports matter: Discoveries, foreign direct investment and growth, an empirical assessment for Middle East and North African countries

2011 ◽  
Vol 20 (4) ◽  
pp. 507-533 ◽  
Author(s):  
Dalila Nicet-Chenaf ◽  
Eric Rougier
2018 ◽  
Vol 9 (1) ◽  
pp. 57-68
Author(s):  
Marwa Lazreg ◽  
Ezzeddine Zouari

This paper provides a study of the relationship between sustainable development and foreign direct investment (FDI) from an empirical point of view in the case of the North African countries during the period from 1985 to 2005. We use the cointegration test, the FMOLS (Fully Modified Ordinary Least Squares) model and the Granger causality test to examine this relationship. According to the empirical results, we confirm the existence of a cointegration relationship between the different series studied in this paper. Based on the cointegration test we can use the error correction model. Also, to test the effect of FDI on sustainable development in the North African countries, we make an estimate by FMOLS method. We found that the foreign direct investment has a positive impact on CO2 emissions. Also, the Granger Causality test confirms the presence of a bidirectional relationship between FDI and CO2 emissions (Carbon dioxide). That is to say, the FDI can cause CO2 emissions and CO2 emissions can cause FDI based on the Granger causality.


Author(s):  
Arhan S. Ertan ◽  
Ahmed M. Musabeh

North Africa is considered to be one of the wealthiest areas of the continent thanks to its natural resources and strategic geopolitical location. While the region is generating about one-third of Africa's total GDP, its economic indicators are not presenting a bright picture for North African countries. This chapter attempts to provide an in-depth overview of the investment environment and shed light on the main constraints on foreign direct investment (FDI) in each of the North African countries. The authors focus on contemporary trends in FDI and policies regarding human capital promotion and infrastructure development. The descriptive analysis indicates that the volume of FDI in the North Africa region is still weak compared to international flows to other developing regions. This outcome can be associated, in addition to unattractive FDI policies, with the absence of real economic and financial reforms, persistent political instability, lack of technological readiness, inadequate regulatory and institutional framework, high corruption and inefficient bureaucracy.


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